EUR/JPY Forecast January 30, 2017, Technical Analysis

The EUR/JPY pair rallied on Friday, testing the 123 handle. There is a significant amount of resistance above, but I believe that every time we pull back the market will attempt to break above it. I have no interest whatsoever in selling, although I do recognize that pullbacks will be a very real possibility. Longer-term, I believe this market reaches the 125 handle but we may have a lot of work to do before getting there. The 120 level below should be the “floor” in this market going forward, and it is not until a breakdown below there that I think the analysis changes.